Oil Companies are Finding Ways to Skirt Water Scarcity

Between recycling flowback and the ability to use brackish water, energy companies are avoiding a potential pitfall.

Knowing full well that fracking for oil and natural gas consumes extreme amounts of freshwater, companies are becoming more innovative in their use of recycled flowback and brackish water. Apache Corp (NYSE: APA) is running wells in the Permian without using a single drop of freshwater, and companies like The Dow Chemical Company (NYSE: DOW) and Halliburton (NYSE: HAL) are putting technology to use in order to help other companies follow Apache's lead. Check out our short video below for more details on which areas are running short and how these companies are combating the issue.

Innovation is a disruptive force. Check out our next disruptor in 2014

This segment is from Thursday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

Author

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Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.